Federal Circuits, 9th Cir. (March 11, 1988)
Docket number: 87-2047
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Joseph W. Charles, Glendale, Ariz., for plaintiff-appellant.
Dennis I. Wilenchik, Storey & Ross, Phoenix, Ariz., and Jon N. Vogel, Vogel & Wulfers, Scottsdale, Ariz., for defendants-appellees.Appeal from the United States District Court for the District of Arizona.Before SKOPIL, REINHARDT and LEAVY, Circuit Judges.SKOPIL, Circuit Judge:Plaintiff-appellant Richard Charlton ("Charlton") appeals from a district court's order permanently enjoining him from attacking a bankruptcy sale of his property. We agree with Charlton that the injunction should not have been issued without a hearing on the merits. We reverse and remand for further proceedings.FACTS AND PRIOR PROCEEDINGSIn 1979 Charlton filed a Chapter 11 petition in bankruptcy. The bankruptcy court issued an order authorizing the sale of a major asset of the estate. On appeal, we temporarily stayed the sale of the property, conditioned upon Charlton's filing a bond of adequate security. When Charlton failed to post such a bond, the stay expired and the property was sold. We dismissed Charlton's appeal as moot.Since that time, Charlton has repeatedly challenged the validity of the sale of his property. In rejecting one such collateral attack, we declared that "Charlton cannot challenge the validity of the sale in this proceeding, whether directly by seeking a decision on the merits or indirectly by seeking to have the orders approving and confirming sale vacated." In re Charlton, 708 F.2d 1449, 1455 (9th Cir.1983).During the pendency of yet another of Charlton's appeals to this court, appellees requested an injunction to preclude new collateral challenges to the bankruptcy court's order. We denied the request without prejudice to its renewal before the district court. In district court, Charlton opposed the injunction on the ground the court had no legal basis to issue such relief. The district court disagreed, reasoning that it possessed both the authority "to enforce compliance with its decision by directly enjoining action contrary to those decisions" and the power "to enforce the effect of the doctrines of collateral estoppel and res judicata by issuing injunctions against repetitive litigation." The court, without holding an evidentiary hearing, issued the injunction.DISCUSSIONThe All Writs Act, 28 U.S.C. Sec . 1651(a) (1982), confers upon federal courts the power to "issue all writs necessary or appropriate in aid of their respective jurisdictions...." In Wood v. Santa Barbara Chamber of Commerce, Inc., 705 F.2d 1515, 1524 (9th Cir.1983), cert. denied,Try vLex for FREE for 3 days
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